Buy Title Insurance getting started

5 Reasons to Buy a Home in the next 5 Months

clock July 24, 2014 06:50 by author MyTitleDirect
by Hal M. Bundrick courtesy of Yahoo Homes : July 21st, 2014       A combination of market factors may make you think you're getting priced out of the home market. But one observer believes first-time homebuyers might want to consider making a move.  "I know it's hard to face rising interest rates and rising home prices at the same time," says Ilyce Glink, real estate expert and managing editor of the Equifax finance blog. "The good news is there's still plenty of runway if you want to buy a house this year." Glink believes first-time homebuyers should consider these five good reasons to buy a house before the end of the year: Home prices are still off their highs Yes, home prices are rising from the lows seen during the housing crash of 2008, but they're still nearly 20% off their mid-2006 peak. According to the S&P/Case-Shiller Home Price Index, average U.S. home prices are currently at summer 2004 levels. In markets that are still recovering, first-time homebuyers could see significant appreciation over the next few years, if they buy now. Interest rates are expected to keep rising Interest rates are slowly climbing, and as the Federal Reserve concludes its economic stimulus plan, rates are expected to continue to rise. Some experts believe mortgage interest rates could hit 5% by the end of 2014 or the first quarter of 2015, according to Glink. And even a small bump in interest rates can mean a significant jump in your monthly note. "If you're offered a 4.2% interest rate on a $400,000 mortgage, for example, your monthly payment will be $1,961, and you'll pay more than $300,000 in interest over the loan's 30-year term," Glink says. "If your interest rate were 4.9%, your monthly payment would jump to $2,115, and the total interest paid over the life of the loan would exceed $360,000." Rental rates are rising There is always an argument to be made regarding whether to buy or rent. It's all a matter of your particular situation – as well as the status of your local housing market. If you need to be mobile -- prepared for job transfers or out-of-state promotions -- or are continuing to search for "the perfect place," renting is probably right for you. However, if you would like to put down some roots, and rents are high in your hometown – it might be cheaper to buy. "Divide the list price of the home you're interested in by the annual rental rate of a comparable property to determine the price-rent ratio," Glink advises. "If it's below 20, chances are it's a good time to buy." Of course, buying a home means more than a mortgage. Remember to consider the other built-in expenses: maintenance, insurance, taxes and utilities. Consider your buying power Americans have been steadily reducing their debt load. Maybe you have, too. The lower your debt, the higher your buying power. Creditors will consider your debt-to-income ratio – how much debt you have, compared to your gross (before-tax) income. "Experts generally agree that you can spend between 28% and 36% of your gross income in total debt service -- that's your housing expenses plus your other debt payments," says Glink. With lower debt comes a higher score As you pay off student loans, credit cards and consumer debt, your credit scorewill improve. And that's one of the biggest factors mortgage lenders consider when determining the interest rate and terms of your loan. "You should definitely consider buying this year, because it's unlikely the housing market will look much rosier next year, when interest rates and home prices could be even higher," Glink says.


Final Loan Approval: Underwriting Explained

clock June 5, 2014 09:30 by author MyTitleDirect
Now that your lender has received your appraisal report, they can begin underwriting your file. The underwriter will make the ultimate decision of whether or not the loan is accepted or denied. They will verify all documentation submitted by the processing department and make sure the information meets the loan program guidelines. If there are any deficiencies, they will ask for additional documentation to remedy them. Once they’re comfortable that all guidelines and criteria have been met, a final commitment will be issued along with the final rate-locked Good Faith Estimate. Signing the Commitment It is now time to sign the final commitment. The commitment is a contract that is usually sent to all parties involved in the transaction including realtors and attorneys. Once you sign the commitment, you have accepted the conditions in the contract and your mortgage has been completed. At this point, both you and the bank are obligated to fulfill all the terms of the mortgage and failing to do so will put your down payment and other prepaid fees at risk. Now that the commitment is signed and executed, all parties are notified and you are now ready to work on closing.   Download the article on Buyhomeapp.com


Setting A Closing Date: the How's & Why's

clock April 21, 2014 05:57 by author MyTitleDirect
Now that the title search is complete and you have your mortgage commitment signed, you are ready to set a closing date. When setting a closing date, there are a few things to keep in mind. First off, most people decide to close at the end of the month. The reason behind this desire is due to the fact that there is prepaid interest due at closing. This means that at closing, you are required to pay the interest for the month you are closing. The prepaid interest is calculated from the date you close until the end of that month. For example, if you close on the March 14th, you will pay interest from that date until March 31st. If you close on March 30th, you will pay interest until March 31st, or only one day’s worth of interest. Closing towards the end of the month will require less prepaid interest to be brought to the closing table. It is also important to understand that your 1st mortgage payment will not be due until the 1st full month after you closing is complete. This means that is you close on March 14th, your 1st mortgage payment will not be due until May 1st. Coordinating the date of your closing will take some planning. There are a few items to factor in.  First, you want to make sure all parties can attend. Parties in a home purchase will include:  the buyer’s attorney, the buyers, the seller’s attorney, the sellers, the bank’s attorney and the title company. All of these people will need to agree on a date, time and location. You also want to make sure to bring any necessary items. For instance, a necessary item could be a satisfaction of a judgment that which showed up on the title exam. Your attorney will let you know what these items will be, if any. You will also need a valid ID, such as your driver’s license or passport. Additionally, you may be asked to bring proof that your property taxes are paid (seller). Bank checks will also be needed for certain payments. You will be advised prior to closing on all of these conditions. Read the rest of the article on Buyhomeapp.com here


Title Insurance for Less? A new breed of insurance company is promising discounts for home buyers ~ W.S.J.

clock April 1, 2014 08:28 by author MyTitleDirect
A new breed of insurance company is promising discounts on a type of policy many home buyers don't even realize they need: title insurance. Almost everyone who buys a house also purchases title insurance. Mortgage lenders generally require that borrowers buy a so-called lender's policy. Owners can buy a separate policy for themselves. The insurers determine if there is clear ownership of the property and offer protection if someone later claims an ownership interest in it.   Brian DeYoung   Title insurance can cost hundreds of dollars for modest houses and thousands for multimillion-dollar properties. Yet many home buyers don't focus on the product, or the price, until they sit down at the closing. There often is little incentive to shop around, as established insurers typically charge similar premiums and some states set or cap prices. Consumers tend to rely on a mortgage broker, real-estate agent or lawyer to connect them with a title insurer. Now upstart insurers and agencies are challenging the status quo. Insurance agencies also are being more aggressive in competing for title-insurance business. Redfin, a real-estate agency based in Seattle that has pioneered the use of technology in real-estate sales, started a title-insurance agency, Title Forward, in early 2013. It is based in Philadelphia and sells policies in Maryland, Virginia, Pennsylvania, Georgia and the District of Columbia. Title Forward is telling customers it can save them money by helping them figure out which type of title-insurance policy they need—and whether they can do without the more-expensive "enhanced" policies many agents sell. These policies can cover home buyers if the seller doesn't pay a contractor who did work on the house just before the sale and later claims he is owed money, according to Adam Wiener, a Redfin executive. Enhanced policies cost as much as 17% more in the states where Title Forward works, he says. Title Forward's policies are issued by industry giant First American Financial. Sue-Ann Greenfield, an entertainment-industry business manager from Manhattan, was buying a second home in exclusive Sag Harbor, N.Y., last fall when she went onto the Internet to research closing costs. "I decided I was going to be proactive," she says. "Why am I spending all this money on title insurance, and I don't even know what it is?" Still, greater competition will benefit consumers, says Birny Birnbaum, executive director of the Center for Economic Justice, a nonprofit consumer-advocacy organization based in Texas. Mr. Birnbaum notes that state insurance departments have "requirements in place to make sure a company can pay its claims." In 2007, the U.S. Government Accountability Office, Congress's investigative arm, concluded that the title-insurance industry's reliance on agents who sell to real-estate and mortgage professionals and lawyers, rather than to consumers, presents potential conflicts of interest and raises questions about the "reasonableness of prices" paid by consumers. [The Wall Street Journal]   Read the entire Wall Street Journal article by Leslie Scism (email at leslie.scism@wsj.com) and Alan Zibel (email at alan.zibel@wsj.com) on their web site here  


Title Insurance Series: The Good Faith Estimate (GFE) Why You Order Your Own Title Insurance Part 4 of 8

clock July 18, 2013 11:27 by author MyTitleDirect

We will be beginning Part 4 discussing one of the most important of the sections on page 1 of the Good Faith Estimate (GFE): the SUMMARY OF YOUR LOAN. We will discuss this sections and how they relate to a purchase and a refinance transaction.


[More]


Title Insurance Series: The Good Faith Estimate (GFE) Why You Order Your Own Title Part 3 of 8

clock July 16, 2013 08:52 by author MyTitleDirect

We will be beginning Part 3 discussing some of the sections on page 1 of the Good Faith Estimate (GFE): PURPOSE, SHOPPING FOR YOUR LOAN, and IMPORTANT DATES. We will discuss these sections and how they relate to a purchase and a refinance transaction.
[More]